Paxos has obtained approval from the New York Department of Financial Services (DFS) to extend its Pax Dollar (USDP) stablecoin to the Solana blockchain. This move, reported on December 22, marks a significant shift from Paxos’s previous Ethereum-only issuance, pointing to a strategic diversification in its blockchain partnerships.
Advantages of Solana’s High-Speed Network
Solana stands out with its high transaction capacity, handling approximately 50,000 to 65,000 transactions per second (TPS), starkly contrasting Ethereum’s 30 TPS. This expansion, set for January 17, 2024, is anticipated to offer Paxos’s partners and customers enhanced efficiency and reduced costs.
Walter Hessert, Paxos’s Head of Strategy, notes that Solana’s user-friendly and cost-efficient ecosystem could play a vital role in integrating stablecoins into everyday consumer transactions.
The company’s strategy focuses on exploring new blockchain networks and extending its international footprint. Recent milestones include preliminary approval for a new stablecoin entity in Singapore and regulatory approval in Abu Dhabi for stablecoin issuance and digital asset services, highlighting Paxos’s global ambitions in regulated environments.
Also Read: Paxos Gains Key Approvals for Stablecoin Issuance In Abu Dhabi